The benchmark Nikkei stock average had its seven-session winning streak snapped on Wednesday, hurt by selling to lock in profits.
The 225-issue Nikkei average lost 131.01 points, or 0.57 percent, to end at 22,843.12 on the Tokyo Stock Exchange. On Tuesday, the key market gauge rose 106.86 points.
But the Topix index of all issues listed on the TSE’s first section closed up 3.22 points, or 0.19 percent, at 1,665.90, after gaining 14.25 points the previous day.
An overnight fall in the tech-heavy Nasdaq composite index spurred selling in the Tokyo market, especially for high-tech names such as electronic parts makers, brokers said.
Profit-taking gained strength after the Nikkei hit year-to-date highs for the seventh consecutive sessions through Tuesday, with active buying kept in check ahead of a monetary policy decision by the U.S. Federal Reserve at a two-day Federal Open Market Committee meeting through Wednesday, brokers said.
“Close attention is being paid to the FOMC announcement and comments from Fed Chairman (Jerome) Powell for any hints as to its (the Fed’s) future monetary policy,” said Hiroaki Kuramochi, chief market analyst at Capital Partners Securities Co.
Despite the Nikkei’s fall and the Topix’s slight increase, rising issues comfortably outnumbered falling ones 1,341 to 757 while 55 issues were unchanged in the TSE’s first section.
“The Nikkei’s drop was merely a short break in a bullish period,” an official of a major securities firm said.
Volume increased to 1.792 billion shares from Tuesday’s 1.324 billion shares.
Lower high-tech names included chipmaking gear manufacturer Tokyo Electron and silicon wafer producer Sumco, as well as industrial robot-maker Yaskawa Electric.
Oil names such as JXTG and Cosmo Energy met with selling after a fall in crude oil prices.
Among other major losers were clothing store chain Fast Retailing and technology investor SoftBank Group.
By contrast, airlines attracted purchases, with JAL rising 1.32 percent and ANA 1.19 percent.
Securities firm Nomura gained ground thanks to strong earnings for April-September.
Also on the positive side were cosmetics maker Shiseido and daily goods maker Kao.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average fell 130 points to end at 22,840.